Investors are positioning themselves ahead of the Federal Reserve's upcoming interest-rate decision, with expectations of favorable outcomes that could further boost stock prices. The consistent buying streak observed in the DVAN trend line since Election Day underscores strong investor confidence, as market participants anticipate potential interest rate pauses or reductions. Such monetary policy adjustments could enhance corporate earnings by lowering borrowing costs, contributing to the ongoing bullish sentiment. Despite a recent stall in the rally, the S&P 500 remains close to record highs, supported by strong breadth in heavily traded US stocks, indicating sustained institutional interest.
The Direxion Daily S&P 500 Bull 3X Shares (SPXL) experienced a modest increase, rising 0.59% to $186.25 as of 13:20 on Wednesday, December 18.